to locate the Pending status finance charge batch to post.Use Assess Finance Charges to add finance charges to one or more customer accounts when invoices with outstanding balances exist in applicable aging categories after the Accounts Receivables aging process has been run. Assess Finance Charges calculates finance charges automatically based on the total of open document balances for customers, and automates the process of creating documents. The documents can also be posted using this screen.
Additional information:
The rules for calculating finance charges are specified on the Finance Charges screen.
Aging is based on the Age Invoices By setting on the Receivables Policies screen under Financials | Setup. That dropdown can be set to either Invoice Date or Due Date. The Assess Finance Charges logic looks at this setting to determine the invoice date that is used in calculating the overall client balance(s) and the aging bucket amounts.
Customers with open document balances that are subject to finance charges are determined by the Finance Charges settings on Receivables Policies as well as the Finance Charges Options on Customer. Only customers who are specified as eligible for finance charges will appear in Assess Finance Charges.
Applied adjustments are considered a part of an invoice's net balance. Unapplied adjustments are considered in calculating a customer's overall balance WHEN the Include Adjustments check box is selected in AR Aging under Reports | Financials.
Applied payments are considered a part of an invoice's net balance. Unapplied payments are considered in calculating a customer's overall balance.
The aging results from the Assess Finance Charges screen should be consistent with the aging results from the AR Aging report, assuming the corresponding settings are aligned when the Add button on the Assess Finance Charges screen is selected or when View Report is selected.
Note: Finance charges can also be created for a customer by using Customer Invoice and Adjustment, but the amount is not computed automatically and the document must be entered manually.
Follow these steps to create the finance charges for one or more customers:
Ensure that the Accounts Receivables aging process has been run. See Aging.
Select Financials | Receivables | Assess Finance Charges.
The Number will be automatically assigned to the document generated.
The Status is set to Pending by default. Posting is described in the next section.
In Period, select the period to which you want to post the finance charges.
In Date, specify the transaction date for the finance charges.
In Description, specify a description for the Finance Charges being generated. For example, specify the date for which the process was run.
Session Reference can be used to specify a unique identifier about this Finance Charge process.
Click Add to display the list of customers who are eligible for finance charges.
Note: To narrow the list of customers, specify values in the Selection Criteria area, and then click Add again.
In the Customers grid, click the Select check box for each customer to which you want to assess a finance charge.
Click Save.
To continue now with posting the finance charges and documents, go to step 2 in the next section.
When you post finance charges, a finance charge document is created for each of the customers that was selected in the Customers grid when the pending finance charge batch was saved. The documents also must be posted, either individually using the Customer Invoice and Adjustment screen or all at once here on the Assess Finance Charges screen, as described in these steps:
In Assess Finance Charges, click Find to locate the Pending status finance charge batch to post.
In Status, select Posted. This setting, when saved, posts the finance charges and generates finance charge documents.
Choose from these options for posting the documents:
To post documents from this screen, set Resulting Finance Charge Status to Posted and then click Save. The entire process is completed, and finance charges are applied to the customer accounts.
To post documents individually using the Customer Invoice and Adjustment screen, set Resulting Finance Charge Status to Approved and then click Save. Open Customer Invoice and Adjustment and locate one of the Approved status documents from the batch. On the Billing Information tab, specify the due date for the finance charge invoice in Invoice Due Date. On the Main tab, set Status to Posted and then click Save. The finance charge is applied to the customer account. Repeat for each approved document in the finance charge batch.
After the finance charge is posted, you can print customer statements, if applicable. See Print Customer Statements.
A: Make sure that the customer is eligible for finance charges. Additionally, if you specified selection criteria, try removing the selection criteria and then clicking Add.
A: You must click to select the Include Finance Charges in Aging check box in Receivables Policies in order to see finance charges on the AR Aging report. Open Receivables Policies under Financials | Setup.